The TD Securities – Melbourne Institute Monthly Inflation Gauge has risen 0.1% in January, in a significantly more benign result than the 0.7% rise in December.

In the 12 months to January the inflation gauge increased by 2.5%, following a 2.7% rise for the 12 months to December.

Seasonal adjustments leading to price rises in education, urban transport fares and utilities were offset by falls in the price of clothing and footwear, holiday travel and accommodation as well as books and stationery.

Prices for fuel, fruit and vegetables were relatively flat, according to the inflation measure.

Head of Asia-Pacific Research at TD Securities Annette Beacher said that the result is particularly noteworthy given January is traditionally a strong one for the gauge, which has risen on average by 0.4% for the month in the last seven years.  

The results come ahead of the Reserve Bank of Australia’s first board meeting for the year today, with Beacher predicting that the US Federal Reserve’s tapering schedule and recent emerging market concerns are likely to be significant talking points.